Employers and ‘self-employed loophole’

Sir, – I refer to "Self-employed 'loophole' to be examined" (Business, March 22nd) and the consultation process being undertaken by the relevant government departments. These so-called intermediary-type structures, while undermining the rights of the "employee" or "self-employed individual", do benefit the "employer". Take an example of an employee on €50,000 gross per year – under this system the employer avoids employers' PRSI of 11.75 per cent (€5,375), holiday pay (€4,858), sick pay and redundancy.

The government needs to make it attractive for smaller firms to take on direct employees, who will then enjoy the benefits of social protection. – Yours, etc,

EUGENE HAYES,

Limerick.